As a seasoned crypto investor with a penchant for meme coins and a heart full of Shiba Inus, I must confess that my spirit has been dampened by the recent performance of SHIB. The bear market has left me feeling like I’m chasing after a playful Shiba that just won’t stop dashing away.
This year, Shiba Inu has found itself struggling in a severe downtrend, having dropped more than 71% from its peak, placing it among the crypto market’s most underperforming assets.
On September 17th, Tuesday, Shiba Inu (SHIB) was being exchanged for approximately 0.000013 USD, with reports suggesting that the interest in it was gradually decreasing.
Based on CoinGecko’s data, Shiba Inu (SHIB) saw a 24-hour trading volume of only $177 million. This figure is considerably smaller compared to Pepe ($PEPE) at $747 million and Dogwifhat ($WIF) with $290 million. Even some lesser-known tokens, such as Baby Doge Coin and Neiro, managed higher volumes at $205 million and $364 million respectively.
New information shows that the volume of Shiba Inu’s futures market commitments has significantly decreased. For several months now, it has been stabilized at around $24 million, which is a significant drop from its peak this year of $137 million.
The behavior of Shiba Inu’s price seems to be impacted by major transformations in the meme coin sector over the last year. Notably, the introduction of platforms like Pump.fun and SunPump has made it easier for developers to create new meme coins, marking a significant change in the industry landscape.
Meme-based cryptocurrencies such as Pump.fun have amassed a market value surpassing half a billion dollars, while SunPump’s worth has soared beyond $514 million. Notable meme coins favored by traders include Sundog, Tron Bull, Dogwifhat, Bonk, and Brett.
Despite a significant increase in token burns within the Shiba Inu network, the coin’s price hasn’t kept pace. The burn rate in the last 24 hours surged by approximately 440%, amounting to over 28.2 million coins burned as per Shibburn. This has pushed the total number of burned tokens past 410 trillion.
Theoretically, burning tokens is generally viewed as a beneficial factor for a cryptocurrency, since it lowers the total amount of coins available on the market.
It seems like Shiba Inu’s poor performance might be attributed to the slow expansion of its ecosystem. According to DeFi Llama’s data, Shibarium, their Layer 2 network, has managed to attract only about $1.17 million in assets, while ShibaSwap holds around $15.64 million.
Shiba Inu forms risky pattern
In simple terms, the graphical representation of Shiba Inu (SHIB) showed a “death cross” in July when its 200-day and 50-day moving averages intersected, signaling a downward trend. As a result, the price has fallen by more than 30% since then.
The dog breed Shiba Inu has taken on a descending triangle shape in its chart, with the base line at approximately 0.0000126 USD. In the context of technical analysis, a descending triangle is often seen as a strongly pessimistic chart configuration.
Consequently, there’s a possibility that the token might see a downward breakout as the triangle approaches its convergence point. If this occurs, it may fall to the next significant support at $0.000010 – a level last seen on Aug. 5 and representing a 20% decrease from its current value.
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2024-09-17 16:47